Wednesday’s auction with 10-year-old US Treasury Motats undermined the narrative that investors are moving
and gold.
Thursday’s $ 22 billion $ 22 billion on 30-year-old bonds could provide additional clues to the investor’s confidence in tax policy for US President Donald Trump since began the global trade war in early April and helps signal whether the notes lose their brilliance as the prime minister with fixed income supported by the deepest liquidity and low credit risk.
At the auction on June 11, the demand for the $ 39 billion on 10-year-old notes offered a dividend of 4,421%, according to Exante data, and the primary dealership was reportedly only 9%, the fourth lowest on the record. It’s a character investor made most of the heavy purchase. Primary dealers are the institutions authorized by the central bank to trade in government bonds, and the dismantling refers to the amount of newly issued debt they absorb themselves.
Aggravation of debt situation
From June, US total gross domestic debt is over $ 36 trillion, more than 120% of the country’s gross domestic product (GDP).
The deficit or surplus of public spending on revenue was $ 1.8 trillion in 2024. The figure is expected to increase by $ 2.4 trillion in the coming years due to Trump’s tax relief plans. Currently, the US pays $ 1 trillion as the cost of service of the debt.
The new issue is therefore more likely to aggravate the problem and have more analysts pointing to Bitcoin and gold as a hedge against fiscal policy.
